stamp duty exempt?

[VannaB]

I have just discovered the house I am buying is Stamp Duty Exempt, saving me a few grand. WHy is this the case for some houses/areas?

[naz_nomad]

An area classified as 'deprived' could have no mains drainage (i.e. septic tanks), no shops / facilities, rural ... etc ...etc ...



I didn't pay stamp duty because it's so rural here.

[Ethel]

Some areas are stamp duty exempt because they are in disadvanted / deprived areas that are not popular with home buyers.

It is supposed to be an incentive to encourage people to buy.

[rugeleyboy]

couldnt it also be because the house is under �125,000?

[VannaB]

The house is �143000 so it's technically within price range for stamp duty. Not sure I like the term 'deprived' (!) area though! But maybe I understand why after all-it's near where I currently live and although property is on new estate and only 6 years old, the surrounding areas are all terraced houses. Maybe that is why? It's not rough or violent. God, you'd think I'd be happy by the news eh?

[Cetti]

I don't believe you would pay stamp duty on �143,000 anyway Vanna, as I'm sure it starts at �250,000.

[Cetti]

Sorry, figures wrong.

it's something like one per cent up to �250,000 then three per cent after that.

[Ethel]

The bands are 0% paid at 0 - �125,000,
1% paid on properties costing between �125,000 and �250,000,
3% between �250,000 and �500,000
and 4% for more than �500,000.

In some areas classified as disadvantaged the lower stamp duty threshold is �150,000 with the rest of the bands the same as other UK areas.

[Nether Edge]

Ethel's correct, but % rates apply to whole price.
So no duty up to and inc. �125 000.
1% on prices over �125 000 up to and inc. �250 000, etc.
A price of �180 000 would mean duty or �1800.

And there's no such thing as Stamp Duty any more. It's now Stamp Duty Land Tax (SDLT).